How The Market Is Like CYNK (Which Was Just Halted)

Tyler Durden's picture




 

For all the drama and comedy surrounding the epic idiocy in which a bunch of "investors" took the price of non-existent company CYNK from essentially zero to a market cap of over $5 billion in under a week, most people missed the key message here: the stock is a harbinger of what is happening to the entire market. Because while those defending what is clear irrational exuberance, scratch that, irrational idiocy are quick to point out that CYNK's epic surge took place on less than 0.1% of its outstanding shares, these are the same people to say precisely the opposite about the S&P 500. "Ignore the collapsing volumes sending the stock market to all time high - it's perfectly normal" is an often repeated refrain by the permabullish crowd. Just not when it involves case studies in market insanity like CYNK apparently.

Perhaps ironically, it was the concurrent most recent crisis in Europe, that involving Portugal's cryptic Espirito Santo group, whose top-most HoldCo is largely shrouded in secrecy yet which somehow is not a deterrent to the sellside community to issue one after another "all is clear; don't pull your deposits please" note, that confirmed not only that nobody has any idea what the real situation of European banks is, but how the entire capital market has now become nothing more than one glorified CYNK penny-stock turning into a mid-cap.

Deutsche Bank's Jim Reid explains:

Whatever one feels about financials and the wider financial system, credit markets did arguably get a small glimpse of what things will be like when this cycle does actually end as the structurally impaired liquidity that exists in credit caused a small amount of panic yesterday morning before markets recovered in the European afternoon session. Liquidity is really poor in credit these days which doesn't matter when markets are in buy only mode as they have been for many quarters now, but it does matter on the days when you get a negative story.

In other words, just like the CEO of CYNK who promptly "made" a few billion in paper profits, it feels great to "make" money on virtually no volume. The problem arises when one tries to cash out of paper and into all too real profits.

And here is what happens when one does finally try to book profits: moments ago the OTC BB just announced that, finally, CYNK was finally halted.

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Fri, 07/11/2014 - 08:10 | 4946645 AlaricBalth
AlaricBalth's picture

Cynk sinks.

Fri, 07/11/2014 - 08:14 | 4946652 PartysOver
PartysOver's picture

Coming to a stock near you.

Fri, 07/11/2014 - 08:25 | 4946671 IridiumRebel
IridiumRebel's picture

Only after the criminals are well positioned.

Fri, 07/11/2014 - 08:35 | 4946689 power steering
power steering's picture

Guess that means I'll have to swing my GPRO shares to margin

Fri, 07/11/2014 - 09:01 | 4946736 camaro68ss
camaro68ss's picture

Once you're in you can never leave

Fri, 07/11/2014 - 09:25 | 4946789 dontgoforit
dontgoforit's picture

Welcome to the Hotel Cynkafornia.

Fri, 07/11/2014 - 21:49 | 4949067 Buck Johnson
Buck Johnson's picture

Exactly, also he is correct.  The problem came when it looked like or orders where put to sell and they couldn't have that.  Brothers and sisters, when this market implodes it will take the dollar with it and possibly the govt. also.

 

 

Fri, 07/11/2014 - 08:21 | 4946665 Oldwood
Oldwood's picture

I don't understand how this stock is different from any other. It is worth exactly what someone (or algo) is willing to pay. Other than that it has no value whatsoever. Fucking casino chips and every body is whining about profits. These "investors" care nothing about value beyond what they can sell it for in the next few moments.

I say again, the future is dead. There is no demand to own anything that might have value in five years. Even thirty year bonds value ten days from now is irrelevant as the buyer is likely going to be trading them in the next four hours. WE now have paper gold and silver, because it just takes too damn long to actually buy and sell physical gold. We don't want to own anything, we don't want to build anything, we just want a piece of the action, our cut, a commission, a fee.

The brave new world, the same as it ever was, just more...the fast buck.

Fri, 07/11/2014 - 08:30 | 4946676 DaddyO
DaddyO's picture

Bravo Sir!

As to when the curtain will be pushed back and the puppetmaster exposed to the masses remains to be seen.

The brave new world is really not so...brave!

DaddyO

Fri, 07/11/2014 - 08:34 | 4946687 Oldwood
Oldwood's picture

The only thing people hate more than thinking they are being cheated is being told there is no such thing as something for nothing.

Fri, 07/11/2014 - 08:38 | 4946698 power steering
power steering's picture

Cramer went long yesterday. BUY BUY BUY

Fri, 07/11/2014 - 09:46 | 4946845 auntiesocial
auntiesocial's picture

Duly Noted. I read somewhere if you did the exact opposite of all of Cramer's predictions you would be filthy rich... BOO-YAA! what a jackoff.

Fri, 07/11/2014 - 09:02 | 4946738 csmith
Fri, 07/11/2014 - 09:20 | 4946774 MrBoompi
MrBoompi's picture

Although I understand what you're saying, don't underestimate the oligarch's understanding of what real wealth is. At the end of the day, land and other real estate, water, air, and natural resources are what counts. Look at who owns these things. The markets? These are for insiders and suckers. The insiders just use their play money to bilk everyone else. It's great to be in the .1%.

Fri, 07/11/2014 - 11:30 | 4947178 Mercuryquicksilver
Mercuryquicksilver's picture

Is BTC and different than CYNK?

Fri, 07/11/2014 - 20:21 | 4948838 Zero guest
Zero guest's picture

"There is no demand to own anything that might have value in five years."

Well I can think of one... Her Majesty the Queen of England owns over 8 billion dollars worth of Canadian and American stock. She has about 750 to 1000 different positions in every nook and crany of the North American economy at any one time.

See for yourself:http://relationalstocks.com/instshow.php?op=port&id=3641

Remeber thats just Canadian and American holdings, I have no idea how much of the English and European economy she owns.

She was pretty upset after 2007-9. Ah, to be in the 1%. I guess she would be in the .0000000001%

 

 

 

 

Fri, 07/11/2014 - 08:34 | 4946688 headhunt
headhunt's picture

Cynk sunk.

Fri, 07/11/2014 - 09:18 | 4946768 rubiconsolutions
rubiconsolutions's picture

I said yesterday that this was going to end badly, that it was likely a pump-n-dump scheme and lots of bag holders would lose their gamblings, er, investments. Good morning bag holders! How's your day going?

Fri, 07/11/2014 - 18:50 | 4948603 PiratePiggy
PiratePiggy's picture

Cynics!

Fri, 07/11/2014 - 08:14 | 4946651 RiskyBidness
RiskyBidness's picture

CYNK is a little OUT of SYNC......

Fri, 07/11/2014 - 10:34 | 4946672 RaceToTheBottom
RaceToTheBottom's picture

Actually, I think the authors point was that CYNK was INSYNC with the crazy market, if we can still use the term market.  Now the market?  Totally out of Sync with reality.

Fri, 07/11/2014 - 08:17 | 4946653 Smegley Wanxalot
Smegley Wanxalot's picture

CYNK was halted for one reason only:  the deception was too obvious.

Wall Street knows the deception has to be somewhat concealed for the con to be effective.  Plus, by halting CYNK, they will now say "Look at this scam we uncovered!  We are looking out for you serfs!"

Fri, 07/11/2014 - 08:25 | 4946670 Oldwood
Oldwood's picture

Does anyone really care that the "Rolex" you just bought on the street is fake, if you think you can sell it to someone else for more?

Fri, 07/11/2014 - 09:10 | 4946747 Tall Tom
Tall Tom's picture

So the SEC is reading Zerohedge. They uncovered nothing.

 

But at least that is a start...

Fri, 07/11/2014 - 10:55 | 4947066 zanez
zanez's picture

So ZH runs pop-up ads on midget tranny porn sites?

Fri, 07/11/2014 - 09:49 | 4946852 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Never spook the school of fish by thrusting right in,
It makes the work of the other sharks that much harder,
and might get a bite taken out of your fin.

Fri, 07/11/2014 - 08:16 | 4946654 Dr. Engali
Dr. Engali's picture

Another ass raping of the muppets.

Fri, 07/11/2014 - 08:31 | 4946681 Oldwood
Oldwood's picture

And they thought it was love. Will they still get a call the morning after? Everybody loves the dumb blonde.

Fri, 07/11/2014 - 08:16 | 4946655 Catullus
Catullus's picture

After the past 7 years, I still can't tell you why Jeff Skilling is in jail. Enron actually in some parts of their business made money and had assets.  This is just ridiculous.

Fri, 07/11/2014 - 08:31 | 4946685 RaceToTheBottom
RaceToTheBottom's picture

That was probably a contributing factor.  

They were faced with the decision of putting a majority of CEOs in jail and they decided to change the entry criteria to, well, actually removing the criteria altogether.

Fri, 07/11/2014 - 08:37 | 4946694 Oldwood
Oldwood's picture

The theory of our criminal justice system is not justice but setting an example or creating the illusion of justice to pacify the population. True justice found is more of an accident or coincidence than deliberate action.

Fri, 07/11/2014 - 09:15 | 4946755 medium giraffe
medium giraffe's picture

Illusion of justice, illusion of security, illusion of choice, illusion of freedom. 

'You've been living in a dream world, Neo.'

Fri, 07/11/2014 - 09:20 | 4946772 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Soon the hipster rainbow facist version of this guy is going to be running wall street.

 

https://www.youtube.com/watch?v=lIxWPNVqwWo

 

Fri, 07/11/2014 - 08:16 | 4946656 orangegeek
orangegeek's picture

organized crime buys paper from the company with their "cash"

 

they take the paper to their brokerage and surface the shares

 

they trade the paper, transfer to a bank account and PRESTO!!!!  you now have surfaced crime proceeds

 

so good of the OTC BB to step in a few weeks later - NASD?  SEC?  right, back to sleep

 

 

Fri, 07/11/2014 - 08:20 | 4946662 Unknown Poster
Unknown Poster's picture

It's probably not a good one to BTFD on.

Fri, 07/11/2014 - 08:20 | 4946663 ZippyBananaPants
ZippyBananaPants's picture

How am I going to sell my shares now?

Fri, 07/11/2014 - 08:23 | 4946667 I Am Not a Copp...
I Am Not a Copper Top's picture

Crap I just got in yesterday looking for a ten-bagger.  How am I going to get out now?

Fri, 07/11/2014 - 08:41 | 4946701 Oldwood
Oldwood's picture

Try not to worry so much about your loss. You are an important part of the "system", like that of the water buffalo on the African plains can supply a pride of lions important nutrition for a week.

The "market" thanks you for your sacrifice.

Fri, 07/11/2014 - 08:25 | 4946669 buzzsaw99
buzzsaw99's picture

was the ceo in on the bear trap scheme?

that's what shorts don't understand about the broader stock and bond markets. they are ALL CORNERED. if you want to lose money then by all means short this dog and pony show but YOU ARE ALL ALONE, nobody else is selling. Nobody loves you. Boo hoo.

Fri, 07/11/2014 - 08:30 | 4946680 WTFUD
WTFUD's picture

The Section 419 Naija scam is still alive and well decades after burning many a fool and now more subtly refined by the banking syndicate to pull in even a greater portion of fuckwits.

Fri, 07/11/2014 - 08:31 | 4946686 mastersnark
mastersnark's picture

Probably halted due to imminent release of good news. I bet its website is finally going live...

Fri, 07/11/2014 - 14:13 | 4947766 Emergency Ward
Emergency Ward's picture

"CYNK Technologies announces reports mentioning CYNK found on many major news outlets."

Fri, 07/11/2014 - 08:36 | 4946690 AdvancingTime
AdvancingTime's picture

This is more proof on how this is all a house of cards. When the market shuts the game is over!

For a long time I have been trying to develop a scenario for a market "super crash" and a reasonable map that would arrive at such a situation. Below is an article looking at how it could happen sooner rather than later.

http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html

 

Fri, 07/11/2014 - 08:37 | 4946695 Racer
Racer's picture

Halted because someone tried to sell 1 share?

Fri, 07/11/2014 - 08:45 | 4946704 youngman
youngman's picture

1 share..are HFTs involved now...oh my..to da moon

Fri, 07/11/2014 - 08:38 | 4946696 esum
esum's picture

what we see is a challange to the fed..... go ahead and raise interest rates...... we dare you to think of the 401's and pension funds and the social consequences.... 

and the white house is saying.... pull the rug AFTER THE MIDTERMS... and make it hurt.... i'll fix it with my pen and phone...

and the "investment" pimps are luring the retail client   YOU CANT LOOSE and MISSING THE OPPORTUNITY OF A LIFETIME... IT'S NOT TOO LATE .... YOURE GETTING ZERO N THE BANK.... 

I just bought this for my mother and that for my grandmother and I WANT YOU TO GET SOME TOO

just like AIDS client ZERO.... 

 

 

Fri, 07/11/2014 - 08:38 | 4946697 rsnoble
rsnoble's picture

Maybe some of us should create our own shell company and IPO it. 

It's all fucking crazy.  I now view stocks as individual poker tables.  They've always been that way but now it's extreme.  More like a big game of jenga with more dire consequences.

Fri, 07/11/2014 - 08:40 | 4946699 RiverRoad
RiverRoad's picture

Musical Chairs folks, musical chairs and er....there's only one chair.

Fri, 07/11/2014 - 11:02 | 4947088 aardvarkk
aardvarkk's picture

And there's a giant fat guy smoking a cigar that's been sitting in it since before the music began.

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